Midway Gold Completes US$25 Million Bought Deal Offering

June 06, 2014 09:15 AM Eastern Daylight Time

DENVER--(BUSINESS WIRE)--Midway Gold Corp. (TSX and NYSE MKT:MDW) ("Midway Gold" or the
"Company") is pleased to announce that it has closed its previously
announced bought deal offering of 30,121,000 common shares (“Common
Shares”) at an offering price of US$0.83 per Common Share for aggregate
gross proceeds of US$25,000,430. The offering was conducted through a
syndicate of underwriters co-led by RBC Capital Markets and Haywood
Securities Inc., and including Canaccord Genuity Corp. and Cormark
Securities Inc. (the “Underwriters”).

The Company intends to use the net proceeds of the offering to fund the
construction and working capital for the Pan gold project, Gold Rock
development and permitting, and general corporate purposes.

The prospectus supplement to the Company's short form base shelf
prospectus dated December 5, 2012 filed with the securities commissions
in British Columbia, Alberta and Ontario (the "Canadian Prospectus") and
the prospectus supplement to the Company’s base prospectus dated
November 14, 2012 included in the registration statement on Form S-3
filed with the Securities and Exchange Commission (the "U.S.
Prospectus") contain important information relating to these securities.
Copies of the Canadian Prospectus are available at www.sedar.com
and copies of the U.S. Prospectus are available at www.sec.gov,
and copies of both the Canadian Prospectus and the U.S. Prospectus may
be obtained in Canada from, RBC Capital Markets at RBC Capital Markets,
Attention: Distribution Centre, 180 Wellington St. W., 8th Floor,
Toronto, Ontario M5J OC2 fax: 416-313-6066, email: distribution@rbccm.com
or in the U.S., Attention: RBC Capital Markets, LLC, 3 World Financial
Center, 200 Vesey Street, 8th Floor, New York, NY 10281-8098; Attention:
Equity Syndicate; Phone: 877-822-4089; Fax: 212-428-6260, or from
Haywood Securities Inc. & Haywood Securities (USA) Inc., Attention:
Michelle Jankovich, Suite 700-200 Burrard Street, Vancouver, BC V6C 3L6;
Phone: 604-697-7126; Fax: 604-697-7498; Email: mjankovich@haywood.com.

This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which the offer, solicitation
or sale would be unlawful. The securities being offered have not been
approved or disapproved by any regulatory authority, nor has any such
authority passed upon the accuracy or adequacy of the prospectus
supplements, the Canadian Prospectus or the U.S. Prospectus.

ON BEHALF OF THE BOARD

“Kenneth A. Brunk”Kenneth A. Brunk,
Chairman, President and CEO

About Midway Gold Corp.

Midway Gold Corp. is a precious metals company with a vision to explore,
design, build and operate gold mines in a manner accountable to all
stakeholders while assuring return on shareholder investments. For more
information about Midway, please visit our website at www.midwaygold.com
or contact Jaime Wells, Investor Relations Analyst, at (877) 475-3642
(toll-free).

Neither the TSX nor the NYSE MKT accepts responsibility for the
adequacy or accuracy of this release.

This press release contains forward-looking statements about the
Company and its business. Forward looking statements are statements that
are not historical facts and include, but are not limited to, statements
about the Company's intended work plans and resource estimates,
including plans for the further development of the Gold Rock Project and
plans for a preliminary economic assessment in relation to the Gold Rock
Project. Forward-looking statements are typically identified by words
such as: “may”, “should”, “plan”, “believe”, “predict”, “expect”,
“anticipate”, “intend”, “estimate”, postulate” and similar expressions
or the negative of such expressions or which by their nature refer to
future events. The forward-looking statements in this press release are
subject to various risks, uncertainties and other factors that could
cause the Company's actual results or achievements to differ materially
from those expressed in or implied by forward looking statements. These
risks, uncertainties and other factors include, without limitation,
risks related to the timing and completion of the Company's intended
work plans, risks related to fluctuations in gold prices; uncertainties
related to raising sufficient financing to fund the planned work in a
timely manner and on acceptable terms; changes in planned work resulting
from weather, logistical, technical or other factors; the possibility
that results of work will not fulfill expectations and realize the
perceived potential of the Company's properties; uncertainties involved
in the interpretation of drilling results and other tests and the
estimation of gold resources and reserves; the possibility that required
permits may not be obtained on a timely manner or at all; the
possibility that capital and operating costs may be higher than
currently estimated and may preclude commercial development or render
operations uneconomic; the possibility that the estimated recovery rates
may not be achieved; risk of accidents, equipment breakdowns and labor
disputes or other unanticipated difficulties or interruptions; the
possibility of cost overruns or unanticipated expenses in the work
program; changes in interest and currency exchanges rates; local and
community impacts and issues; environmental costs and risks; and other
factors identified in the Company's SEC filings and its filings with
Canadian securities regulatory authorities. Forward-looking statements
are based on the beliefs, opinions and expectations of the Company's
management at the time they are made, and other than as required by
applicable securities laws, the Company does not assume any obligation
to update its forward-looking statements if those beliefs, opinions or
expectations, or other circumstances, should change.Although the
Company believes that such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to be correct.For the reasons set forth above, investors should not attribute undue
certainty to or place undue reliance on forward-looking statements.

Cautionary note to U.S. investors concerning estimates of reserves
and resources: This press release and the documents referenced in this
press release use the terms “reserve" and"mineral
resource“, which are terms defined under Canadian National Instrument
43-101 and the Canadian Institute of Mining and Metallurgy
Classification system.Such definitions differ from the
definitions in U.S. Securities and Exchange Commission ("SEC") Industry
Guide 7.Under SEC Industry Guide 7 standards, a "final" or
"bankable" feasibility study is required to report reserves, the
three-year historical average price is used in any reserve or cash flow
analysis to designate reserves and the primary environmental analysis or
report must be filed with the appropriate governmental authority.Mineral
resources are not mineral reserves and do not have demonstrated economic
viability. The SEC normally only permits issuers to report
mineralization that does not constitute SEC Industry Guide 7 compliant
"reserves" as in-place tonnage and grade without reference to unit
measures.The references to a “resource” in this press release
and the documents referenced in this press release are not normally
permitted under the rules of the SEC.It cannot be assumed that
all or any part of mineral deposits in any of the above categories will
ever be upgraded to Guide 7 compliant reserves. Accordingly, disclosure
in this press release and in the technical reports referenced in this
press release may not be comparable to information from U.S. companies
subject to the reporting and disclosure requirements of the SEC.